CRA issues a notice on the purpose-built rental housing rebate (PBRH rebate)

CRA has issued Notice 336 on the rebate under s. 256.2 of all the GST on the sale or self-supply of a newly-constructed multiple (over 4-unit) rental housing complex. Points made in the Q&A section include:

• Regarding the requirement that construction have commenced after September 13, 2023, this is considered to be when the excavation work starts.
• The PBRH rebate is not available for the substantial renovation of an existing complex (although it can be available for the addition of multiple units to an existing complex).
• Assuming the other requirements were met, the PBRH rebate could be available, for example, for the conversion of an office building to a multiple unit residential complex (where the conversion started after September 13, 2023), and to the construction of a long-term care facility (assuming it qualified as a multiple unit residential complex).
• The entering into before September 13, 2023 of an agreement to purchase a new 10-unit apartment building would not preclude access to the PBRH rebate where the construction started after that date.

Neal Armstrong. Summary of GST/HST Notice, No. 336, Purpose-built Rental Housing Rebate, June 2004 under ETA s. 256.2(3.1).